Organizational Behavior

Running head: ORGANIZATIONAL BEHAVIOR
ORGANIZATIONAL BEHAVIOR
Name of the student
Name of the university
Author note

ORGANIZATIONAL BEHAVIOR1
Introduction
Negotiations form a delicate point of activity which assist an organization in developing
the potency of the same while increasing the possibility of good sales. On the other hand, the
service related contracts and the lease holding operations are often strengthened through the
inclusion of steady negotiations between the different organizations. It has been noted that the
negotiations and contracts form an essential part of the contract forming process in the
organizations1. On the other hand, effective negotiation based skills assists an entrepreneur in
resolving conflicts and improving relations. The report will analyze the issues that are being
encountered by Nora Holdings and the manner in which the same might be resolved through
delineation of a set of recommended activities.
Issue identification
The issues that are being identified during the negotiation meeting between Nora
Holdings and Sakari are being enumerated in this section of the report.
 The major concern that was raised by Sakari during the negotiation meeting of Helsinki
held in February 4 was based on the incapability of Nora in penetrating the South- East
Asian market. The lack of sufficient research and development team and activities in
Nora affected the capacities of the venture in developing market expansion related
strategies while considering the South East Asian markets. On the contrary, the lack of
proficient knowledge of the enterprise on the preferences and demand of the South East
1 McShane, Steven, and Mary Ann Von Glinow. Organizational behaviour: Emerging
knowledge and practice for the real world. McGraw-Hill/Irwin, 2010.

ORGANIZATIONAL BEHAVIOR2
Asian customers affected the propositions of the same while expanding in the different
regions of the South East Asian markets.
 Sakari’s chairperson raised concern relating to the capacity of the Malaysian employees
of Nora in manufacturing the vast number of propositions while improving the quality of
the products and maintaining on-time deliveries. The concerns were raised relying on the
fact that the concerned organization failed to provide adequate training and development
scopes to the existing employees. Again, the lack of proficient training and development
reduced the scopes of empowerment to the employees for the organization which affected
the rate of innovation and productivity while mandating the quality of the propositions.
 The disagreements between Nora and Sakari relating to the clash of interests based on
equity ownership and control over the technologies that are being provided by Sakari to
Nora affected the negotiation agreements. The clash of interests between the two
companies widened with the inclusion of royalty payments and the expatriate salary
structure and perks. Nora faced an undefinable challenge relating to the lack of trained
employees, which affected the interests of the same while operating in the different
markets. On the other hand, the companies also developed disagreements based on the
location for carrying on the arbitration process which again affected the agreement of
joint venture between the two companies. The rising disagreements and clash of interests
affected the outcome of the negotiation process.
 The change in the organizational control and compliances along with the culture might
affect the level of motivation of the existing employees of Nora. Again the prioritization
of the different Finnish managers from Sakari over the experienced personnel of Nora
might create discontent among the employees which would affect the rate of productivity